Affordability of residential water tariffs: Alternative measurement and explanatory factors in southern Spain (original) (raw)
Related papers
Is the human right to water sufficiently protected in Spain? Affordability and governance concerns
Utilities Policy, 2020
Most research on water poverty focuses on developing countries. However, research is also needed in developed countries, where water may be too expensive for some households. This paper examines the case of Spain, using data from 16 cities that combined are home to 35% of the Spanish population. We study both national and local systems of regulation and governance. The objective is to determine whether low-income families face a genuine threat of exclusion from water supply. To this end, we analysed whether the Spanish legal framework allows that water supply is cut off for non-payment of the bill. We also did different estimates of the percentage of the family income spent on the water bill, which in some cases can surpass 10%. The estimates account for tariff discounts, as well as assistance programmes available to those who are struggling to pay their water bill. Although there is no problem of affordability for an average Spanish family in general, we conclude that families at risk of poverty face a real threat of exclusion from water services because they are not able to pay for them and the institutional framework does not sufficiently protect them.
Assessing water services affordability: macro and micro approaches
2015
Regulation of water services is increasingly important worldwide. Consumer protection and in particular the promotion of affordable prices is one of the main duties of water regulators, regardless the type of the regulatory regime. However, affordability problems are frequently seen as already solved in developed countries. The purpose of this paper is two-fold. First, contribute to the debate on how much water must be affordable for all by discussing complementary approaches on the affordability concept. Second, using the Portuguese case as an example, and empirically weighting whether residential water charges are affordable for the most vulnerable groups, it intends to assess if water affordability concerns should be reinforced/reoriented. The main rational behind this research relies on the argument that macro affordability only provides a basis for a needed deeper affordability assessment. Indeed, macro affordability analysis gives a general picture on the issue, but a single n...
Urban Water Tariffs in Spain: What Needs to Be Done?
Recently, in the context of the Integrated Water Resources Management, demand policies are playing a more important role as opposed to traditional supply policies based on the construction of large hydraulic infrastructures. In this new context, water tariffs have become an important tool in achieving economic efficiency, environmental sustainability, and social equity. This paper reviews the situation of urban water tariffs in Spain, a country subject to high water stress. It analyzes the capacity of urban water tariffs to recover service costs and to promote efficiency, sustainability, affordability, and equity. Although it has made significant progress in recent years, the Spanish urban water tariff system still faces many challenges. Many of these challenges would be better addressed by a national independent regulatory body.
Water, 2018
Affordability of services is a determinant for people's level of access to water. In this study, we analyse the effect of a programme aimed at improving the affordability of water services on users' water consumption. The programme was implemented in 2012 by the local government of the city of Bogotá, Colombia, intending to provide an essential "lifeline" volume of water to poor households free of charge. Our assessment was carried out with secondary data and used difference-indifference estimators in a panel data analysis of a two-period sample: 2011 and 2014. The unit of analysis was defined based on the city's administrative divisions and the socioeconomic stratification of residences. Over the period analysed, beneficiaries' household consumption increased, reaching per capita consumption levels closer to those of the upper strata of users. Results suggest that the programme contributes to increased consumption and equity among users.
How should water affordability be measured in the United States? A critical review
WIREs Water, 2021
The human right to water (HRTW) and sustainable development goals (SDG) emphasize that human well-being depends not just on the quality and physical accessibility of drinking water, but also on its economic accessibility. Despite this recognition, governments and academics alike have been hard-pressed to define and measure water affordability. In the US, affordability is no longer solely focused on utility cost-recovery models but equitable water access for individuals and households. How should water affordability be measured to represent this new focus? This question motivates the critical review presented here. We propose that household-centered affordability measures reflect the normative aims of internationally established frameworks such as the HRTW and the SDGs. Linking measurement to aims is essential to improve transparency and comparability across studies, and ultimately, to align measures with water access objectives. First, we characterize normative positions outlined in the HRTW and SDGs and identify defining features of water affordability. Second, we identify dominant definitions and measures of affordability, including novel approaches. Bringing the defining features of affordability to bear on existing measures enables us to identify several emergent debates in the literature where affordability measures could better incorporate the aspirations of the HRTW and SDGs. We conclude with recommendations on how to improve water affordability measurements, while recognizing the trade-offs between ideal measures and practical implementation.
Measuring residential water affordability and basic water needs in South Africa
EconStor Preprints, 2021
Designing a desirable block tariff structure for residential water use has been a challenging task for regulated utilities. In this study, we investigated whether the existing increasing block tariff design addresses the issue of affordability, especially for lower-income groups. Using the South African NIDS household-level panel data and municipal tariff data, we estimated household demand for water using a Stone-Geary specification. The Stone-Geary functional form allows price elasticity of demand to vary with quantity consumed and allows for the estimation of a basic threshold level of consumption below which demand is price inelastic. Truncated and quantile regressions were run to observe the impact of the different socioeconomic variables on different categories of water-consumption and income levels. The results show that in general, the first block (i.e., 6 000 litres) of consumption set by water utilities does not represent a basic water need. The `lifeline' or subsistence portion of water is found to be 11.51 kl of water per household per month. Moreover, when considering the poorest or low-income households, water charges raise affordability concerns in a number of important water-utility areas. Basic water is not affordable as the proportion of household income that must be spent to acquire it is high. Any household with an income of $398 or less must spend a significant proportion of its income (above 5.88%) to receive the subsistence amount of water. Furthermore, a number of socio economic and environmental factors are found to affect the demand for water, and these will help in employing tailored economic and technological interventions for efficient utilization of water.
Limits of pricing policy in curtailing household water consumption under scarcity conditions
Water Policy, 2008
A key policy question in designing urban water policy and institutional reforms is: what should be the appropriate structure of water charges to ensure long-term sustainability of water service? This is because water pricing touches on equity and on the willingness of the consumer to pay, but more on its affordability. This study focuses on understanding the nature of household demand for water, and attempts to express the household demand functions. A panel of data of 10,564 complete observations on water bills, drawn from a household expenditure survey conducted in 2003, is used to estimate domestic water demand function. Price and other dummy variables were used in the analysis and the results discussed. Specifically, the household water demand and the per capita demand are analysed, taking into consideration such variables as marginal price, rate structure premium and level of household income. The results show that the estimated water demand is inelastic and so is the income elasticity. The effect of the findings on water policy making in regard to pricing is cited. Limitations of price effectiveness as a tool to curtail water consumption are highlighted.
Working Papers, 2006
We analyse the affordability of water services in France with a particular reference to low-income households. Using quantitative analyses of French household microeconomic surveys, we investigate whether private sector participation and public regulation in water supply has helped the poorer sections of the community. We show that 4.31% of households in France (representing around 11.6 millions of households) needed to spend more than 3% of their income on paying water charges in 2001. Our results also demonstrate that single parent families (especially if the head of the household is a woman) or on contrary large families for which social aid represents a large proportion of the total income should be considered as the most vulnerable groups in terms of water affordability. Our results also suggest that private participation into the water sector has not helped the poor in terms of their affordability problem.